Executive Mosaic’s GovCon Index stayed positive, closing at $5,117.16 (+0.02%) on a teeny gain. Wall Street’s major stock indexes retreated from Tuesday’s rally and flashed red again. The Nasdaq Composite (-1.05%) declined the most, while the Dow Jones Industrial Average (-0.60%) and the S&P 500 (-0.77%) finished lower.
The sharp losses of chip stocks, including NVIDIA’s (Nasdaq: NVDA) -5.12%, pulled down the tech-heavy Nasdaq. Super Micro Computer (Nasdaq: SMCI) tanked 20.14% after the AI server maker reported a gross margin drop from 17% to 11.2% in Q4 fiscal 2024. Airbnb (Nasdaq: ABNB) plunged 13.38% due to decelerating booking growth in the second quarter and slower demand guidance.
Lockheed Martin (NYSE: LMT) topped a dozen gainers on the GovCon Index, followed closely by ICF (Nasdaq: ICFI). Carlyle Group (Nasdaq: CG), slipped 2.85% to lead 18 decliners and is the GCI’s worst performer for the fourth consecutive trading session.
Multinational IT consulting firm CGI (NYSE: GIB) announced that the U.S. Department of State granted CGI Federal a two-year, $378 million contract extension. Its wholly-owned operating subsidiary in the U.S. will continue rendering end-to-end passport application processing services to the Bureau of Consular Affairs.
Kratos Defense & Security Solutions (Nasdaq: KTOS) declined 1.42% despite reporting better-than-expected quarterly results. In Q2 2024, total revenues increased 15.35% year-over-year to $577.3 million, while net income reached $9.2 million compared to the $9.7 million net loss in Q2 2023. “We are growing the business while also increasing our profitability,” said Eric DeMarco, president and CEO of Kratos.
Jacobs (NYSE: J) declined after reporting net earnings of $146.9 million in Q2 2024, which is 11.6% lower than in Q2 2023. However, revenue increased 1.06% to $4.23 billion from a year ago, and the People & Places Solutions backlog rose 10.2% year-over-year to a record $19.3 backlog.
Investors still feel the aftershock of the recent tailspin on Wall Street and global stock markets. U.S. stocks reversed course mid-week, but the ten-year Treasury yield recovered from its intraday low of 3.66% at the start of the week, rising to 3.95%. Nonetheless, market analysts still expect corporate earnings growth to remain strong.
Market Summary
| Index | Price | Net Change | % Change |
|---|---|---|---|
| GovCon Index Daily Average | 5,117.14 | 1.04 | 0.02% |
| Dow Jones Industrial Average | 38,763.45 | -234.21 | -0.60% |
| S&P 500 | 5,199.50 | -40.53 | -0.77% |
| NASDAQ | 16,195.81 | -171.04 | -1.04% |
Top 5 GovCon Index Daily Percentage Performers
| Symbol | Price | Net Change | % Change |
|---|---|---|---|
| LMT | 548.51 | 6.95 | 1.28% |
| ICFI | 155.28 | 1.78 | 1.16% |
| GIB | 105.79 | 0.78 | 0.74% |
| BAESY | 65.32 | 0.45 | 0.69% |
| NOC | 489.75 | 3.22 | 0.66% |
Top 5 GovCon Index Daily Net Performers
| Symbol | Price | Net Change | % Change |
|---|---|---|---|
| LMT | 548.51 | 6.95 | 1.28% |
| NOC | 489.75 | 3.22 | 0.66% |
| GD | 287.17 | 1.79 | 0.63% |
| ICFI | 155.28 | 1.78 | 1.16% |
| TTEK | 228.65 | 1.48 | 0.65% |
Top 5 GovCon Index Daily Percentage Decliners
| Symbol | Price | Net Change | % Change |
|---|---|---|---|
| CG | 38.22 | -1.12 | -2.85% |
| AVAV | 167.02 | -2.60 | -1.53% |
| KTOS | 20.07 | -0.29 | -1.42% |
| TXT | 83.46 | -1.11 | -1.31% |
| HII | 253.44 | -3.11 | -1.21% |
